STAND. COM. REP. NO.1059
Honolulu, Hawaii
, 2001
RE: S.B. No. 493
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Education, to which was referred S.B. No. 493, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOLS,"
begs leave to report as follows:
The purpose of this bill is to establish a public-private partnership for school repair and maintenance (partnership) within the Department of Accounting and General Services (DAGS).
More specifically, this bill:
(1) Establishes the Hawaii School Repair and Maintenance Trust Fund (Trust Fund) as a separate trust fund of Hawaii 3R's, a Hawaii nonprofit organization, to award grants or contracts for the repair and maintenance of public schools;
(2) Requires the partnership to assist Hawaii 3R's with the implementation of the Trust Fund by providing assistance in seeking sources of funding and other areas;
(3) Requires Hawaii 3R's to select members for the Hawaii School Maintenance and Repair Advisory Board (Board) that shall solicit and raise funds for the Trust Fund, establish criteria for the expenditure of funds, and make recommendations for grants and other expenditures;
(4) Allows contractors, engineers, architects, surveyors, and landscape architects to claim an income tax credit for contributions of in-kind services provided to schools for repair and maintenance;
(5) Requires the Comptroller to submit reports on the progress of the partnership and Trust Fund to the Legislature prior to the 2002, 2003, and 2004 Regular Sessions;
(6) Appropriates $5,000,000 to the Trust Fund for start-up and other program expenses to be matched by private sector donations and federal contributions; and
(7) Appropriates $41,772 for a staff person within DAGS to coordinate the partnership.
DAGS, Hawaii State Teacher Association, Chamber of Commerce of Hawaii, General Contractors Association of Hawaii, and Hawaii Business Roundtable submitted testimony in support of this bill. Hawaii's 3R's submitted testimony in support of this bill with proposed amendments. The Department of Taxation and Department of Education submitted testimony in support of the intent of this bill. Tax Foundation of Hawaii submitted comments on this bill.
Your Committee finds that this bill presents a very creative method of funding school repair and maintenance projects. There is currently a backlog of these projects totaling over $600,000,000, and a concerted effort must be made to reduce this astonishing figure. This bill will provide a structure within which concerned members of the community may lend their money, supplies, and skills to help their schools. This type of public-private endeavor is the only way a significant number of school repair and maintenance projects will be completed.
Upon further consideration, your Committee has amended this bill by deleting its substance and replacing it with the contents of H.B. No. 472, H.D. 2, its companion measure, and making additional substantive and technical amendments to the bill. This bill has been further amended to:
(1) Delete section 2 that created a pilot project under DAGS, and duplicated the existing organization and structure of Hawaii 3R's;
(2) Change the membership of the Board to include principals rather than teachers; and
(3) Clarify that donations of materials or labor for school repair and maintenance shall be tracked and recorded, but are not technically part of the accounting for the Trust Fund.
As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 493, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 493, S.D. 2, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Education,
|
____________________________ KEN ITO, Chair |
||